Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 5,500 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Manufacturing Cost Purchase Cost Frame $39.00 $52.00
Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 5,500 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Manufacturing Cost Purchase Cost Frame $39.00 $52.00
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 107P
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Question
A linear programming computer package is needed.
Frandec Company manufactures, assembles, and rebuilds material-handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 5,500 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown.
| Component | Purchase Cost | |
|---|---|---|
| Frame | $39.00 | $52.00 |
| Support | $12.50 | $16.00 |
| Strap | $7.50 | $8.50 |
Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows.
| Component | Department | ||
|---|---|---|---|
| Cutting | Milling | Shaping | |
| Frame | 3.5 | 2.2 | 3.1 |
| Support | 1.3 | 1.7 | 2.6 |
| Strap | 0.8 | — | 1.7 |
| Capacity (hours) | 350 | 420 | 680 |
(a)
Formulate and solve a linear programming model for this make-or-buy application. (Let FM = number of frames manufactured, FP = number of frames purchased, SM = number of supports manufactured, SP = number of supports purchased, TM = number of straps manufactured, and TP = number of straps purchased. Express time in minutes per unit.)
Min
39FM+52FP+12.5SM+16SP+7.5TM+8.5TP
Cutting constraint
Check which variable(s) should be in your answer.Milling constraint
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Shaping constraint
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Frame constraint
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Support constraint
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Strap constraint
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).
21000≤21000
Check which variable(s) should be in your answer.Milling constraint
0
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Shaping constraint
0
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Frame constraint
0
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Support constraint
0
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).Strap constraint
5500
Enter inequalities using less than (<), greater than (>), less than or equal (≤), or greater than or equal (≥).
FM, FP, SM, SP, TM, TP ≥ 0
How many of each component should be manufactured and how many should be purchased? (Round your answers to the nearest whole number.)
(FM, FP, SM, SP, TM, TP) =
5500,0,1346,9654,0,5500
(b)
What is the total cost (in $) of the manufacturing and purchasing plan?
$
(c)
How many hours of production time are used in each department? (Round your answers to two decimal places.)
Cutting hrsMilling hrsShaping hrs
(d)
How much (in $) should Frandec be willing to pay for an additional hour of time in the shaping department?
$
(e)
Another manufacturer has offered to sell frames to Frandec for $45 each. Could Frandec improve its position by pursuing this opportunity? Why or why not? (Round your answer to three decimal places.)
. The reduced cost of indicates that the solution be improved.
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